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Tip: Do You Know What’s Included In A Real Estate
Agreement Of Purchase and Sale?
When an written offer to purchase a
home is signed by both buyer and seller it becomes a binding
contract or Agreement of Purchase and Sale on all concerned.
Therefore the Agreement must include a
number of specific items, such as:
- Date of acceptance, full
legal names and addresses of
seller and buyer.
- The property’s municipal
address and legal description.
- The amount of money paid as deposit and
the third party, commonly the listing Broker, holding the
deposit "In Trust".
- The final "Purchase and
Sale" price.
- If applicable, a condition
(or contingency), normally for ten days from acceptance of
the offer, in order for the buyer to secure financing.
This condition spells out the terms of financing by the
buyer, i.e.: the amount of down payment, and financing
arrangements for the balance of the purchase price.
The buyer usually states the highest interest rate that he
is willing to pay. If the buyer cannot secure
financing at this rate or less, the buyer usually retains
the right to cancel without a penalty.
- Conditions (contingencies), if any, such
as review by lawyer, home inspection, financing, or the sale of buyer’s present home.
There is normally a specific time period affixed to these
condition types of conditions.
- Important provisions and
terms,
including the list of items included and not included with the sale,
stipulation that title must be free and clear.
- Closing date, the date
ownership of title will change hands. This will usually be
a business day, when the Registry office is open. The
majority of the time this will also be the moving date
unless other specific arrangements were made in the
Agreement for continued occupancy after the "closing
date".
Whether you are buying or
selling, we can help you negotiate the best terms of sale for your
particular situation. Call or e-mail
us today for assistance on all your real estate needs.
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